To preserve life on earth as we know it, global greenhouse gas emissions must be reduced by 45% before 2030, and reach net zero by 2050. The task ahead of us is mammoth. In fact, it is one of the greatest challenges the world has ever faced and what’s required is nothing short of a complete transformation of how we produce, consume, and move about.
The 2023 UN Climate Change Conference is happening as I write this, including the 28th meeting of the Conference of Parties (COP28). One of the tasks of COP28 is to agree on an ambitious energy package to triple renewable energy capacity and double energy efficiency by 2023, including a phase out of fossil fuels.
To achieve this, developing countries such as Africa will need to more than double investment in its energy sector to US$200bn per year by 2030 to meet its energy-related climate goals. However, the largest emitters being the US, China, and India have reaffirmed their agreements to cut methane emissions and boost renewable energy as a sign of their cooperation to reduce power-sector carbon emissions.
Our ability to change how energy is generated and used will make or break this mission
The good news is that a US$30bn global fund for climate solutions has been set up to attract US$250bn in investment by the end of the decade, and the COP parties have pledged US$700m in funding to help low-income countries cope with the loss and damage caused by climate change. And the climate-related events keep getting bigger with more innovators and visionaries developing more hardware and software to enable the transition.
While funding and technology are both critical agents of change, possibly the biggest success factor of all is our ability to collaborate. No one business, country, or government can do everything. And quite frankly, no one country could undertake this massive task alone. A healthy, thriving ecosystem with a shared vision is the only way we will get there, and this was certainly the sentiment of Enlit Europe in Paris, which I recently attended.
There is more than one way to do things well
Every country, community, generation plant, retailer etc has different processes, needs, and dynamics that must be accommodated in a net zero transition solution. Communication, cohesion and especially collaboration will ensure these differing needs are considered.
Every party has a unique role to play and along the way, the sharing of knowledge, insights, and learnings will benefit us all. Furthermore, ecosystems of well integrated technology solutions is the best way forward for ambitious energy companies to make the transition to clean energy without placing all their eggs in one basket. Best of breed means best quality, most flexibility and also importantly the ability to change as the market evolves.
Enlit Europe was of such a huge scale, it really drove home to me the size of the energy industry, the number of moving parts and the collaboration (or requirement to play nicely) that’s needed to move the whole industry forward.
If I look at Flux’s role in the energy transition, it’s ultimately about enablement and acceleration, through a collaborative approach (hence why Flux was built to integrate widely and easily). We’ve had some energy companies come to us with gnarly problems that just cannot be solved by their incumbent billing platforms, but which to the world outside would seem unfathomable as a barrier to achieving net zero. Like being unable to expose and calculate the cost of energy from renewable energy sources.
From EVs to PPA to VPP and more, our part to play is in enabling the solutions that will get us to net zero to quickly and easily be brought to market in a way that satisfies and sustains the profitability and competitiveness goals of internal stakeholders, and meets customer demands for renewables.
If you’re looking for solutions to your biggest challenges or have a vision for the future of energy that you need to mobilise, we’d love to talk more on how our smart, forward focused solutions can help.
